Good News: Condos just got a whole lot more attractive for buyers seeking financing options detailed below.
Take Aways: If you’re a buyer and have about gone your distance with the “House Hunting” in west Michigan (which is a whole lot like looking for endangered species), contact your lender before mid-October and see if this change in the FHA lending policies offers you any additional buying power for a condo.
Bad News: With additional increased demand on condos from buyers, I suspect the price of condos will increase and the inventory will decline.
Take Aways: If you are a condo owner and wish to sell, you need to call me ASAP so we can get your condo on the market priced to accommodate the additional demand and not just to sell!!
Read below for more details.
The U.S. Department of Housing and Urban Development is expected to release updated guidance tomorrow on FHA-insured condominium financing. The new rules should benefit your real estate clients and customers by allowing more buyers to obtain low down-payment mortgages on affordable housing options.
Specifically, the new rules will:
• Extend FHA certifications on condo developments from two years to three years, reducing the compliance burden on condo boards.
• Allow for single-unit mortgage approvals—often known as spot approvals—which will enable FHA insurance of individual condo units, even if the property does not have FHA approval.
• Secure additional flexibility in the ratio of investors to owner-occupants allowed for FHA financing in a condo building.
The full guidance will go into effect in mid-October, 60 days from publication.